Helium Price Increase - How to Get the Most for Your Money

There are a number of factors that effect the balloon industry. An increasingly important one is that helium prices have been rising.

Here's why:

Helium is a by-product of natural gas found in several large fields around the world. The International Balloon Association states that the US is the largest producer of helium and supplies 71% of the world's helium.

The price increase is directly related to the revision of the methodology the Bureau of Land Management (BLM) uses to calculate the price of crude helium offered during its yearly Open Market Sale. Consequently, Federal Crude Helium will be sold at $75.00 per thousand cubic feet in 2011 - up from $64.75 in 2010 - to cover helium debt repayment and interest. BLM has been charging the minimum price established by the Federal Helium Privatization Act of 1996. The Act established a price that represents the cost of helium but not its value on the open market.

The National Academy of Sciences (NAS) released a report that recommended pricing changes. By selling crude helium at market price rather than the established minimum could "enable more rapid retirement of BLM facilities debt to the US Treasury - a central goal of the 1996 Act".

It is important to note that the new pricing is being applied to open market helium sales only. The cost of helium sold for federal interests will continue to be the minimum allowed by the Act.

So what can you do?

The balloon industry is unique in that helium is strictly used for its ability to lift. It is not possible to recapture helium for reuse. There are some ways in which we are able to conserve the helium we need and use:

- 60/40 Helium/Air regulators help to conserve helium without significantly reducing float time.

- Ultra Hi-Float can be used in conjunction with 60/40 regulators and will float an 11" latex balloon 10+ days.

- Foil balloons are made of material specially designed to extend float time and reduce helium and labor needed to fill them.

- Air-Filled balloons are great alternatives to conserve helium and can be hung or rigged to a structure.

*Much of the information was paraphrased from IBA's analysis found here.